Kingston Resources looks to a golden future at PNG and WA projects

Kingston Resources Ltd (ASX:KSN) is targeting further growth over the 2022 financial year as it aims to become a leading gold miner in the Asia Pacific. In its latest investor presentation, the rising gold developer outlined its current activities and future plans across the Misima project in Papua New Guinea and the Livingstone asset in Western Australia. One of the first major milestones on the horizon is a definitive feasibility study for the Misima asset, which will build on a pre-feasibility study released late last year. Now, with a new financial year underway, Kingston is looking to the future and preparing its precious metals portfolio to hit producer status. As of March 31, Kingston had $13.5 million in the bank to support its development strategy. “Progress on multiple fronts” Commenting on work to date in a market announcement from late June, Kingston managing director Andrew Corbett said: “Kingston is making fantastic progress on multiple fronts this year as we work to deliver a number of significant milestones on the path to recommencing gold production at Misima. “We are exceptionally fortunate to be able to rely on a successful historical blueprint for the development pathway for the Misima Gold Project, with extensive historical production data adding further weight to our current studies and de-risking our development plans." “We look forward to a very active second half of the year, with the definitive feasibility study and approvals program both expected to be completed in early 2022.” Misima Gold Project Kingston’s cornerstone gold asset is central to its vision to become a mid-tier producer. The Misima Gold Project lies 600 kilometres from Port Moresby, Papua New Guinea’s capital city. So far, Kingston has completed a pre-feasibility study at the foundational gold project, with a definitive feasibility study set to finalise in 2021’s second half. Currently, Misima hosts a 3.6-million-ounce gold resource, with around 1.35 million ounces in reserve. The precious metals asset is also home to 24.2 million silver ounces and a 6.5-million-ounce reserve. In Misima’s pre-feasibility study, Kingston outlined a 17-year mine life, with the gold asset expected to produce 130,000 gold ounces every year at an all-in sustaining cost of $1,159 per ounce. The flagship project is calculated to have a $822 million pre-tax net present value with a 33% internal rate of return. What’s most exciting about Misima, however, is its future: the gold asset boasts substantial upside, with the potential for further drilling to grow the project’s resources and reserves. The project’s past is also worth mentioning, with Misima’s extensive mining history de-risking the asset’s development pathway. It’s anticipated Misima will require around $283 million in capital expenditure, including a $37 million contingency. Exploring PNG’s gold-rich soil While it develops the foundational gold play, Kingston is advancing its exploration strategy. The company’s focus remains on near-surface mineralisation, with the Abi, Korbel & Maika, Unuma East, Ewatinona and Misima North prospects listed as priority targets. Misima’s key Umuna deposit is also of significance. The 3.3-million-ounce resource has upside potential, with the open-pit previously producing more than 3.5 million gold ounces. Specifically, Umuma hosts a number of high-grade structures inside a broader mineralised corridor, where gold grading as high as 17.04 g/t has been intersected. A recent resource drilling program at the deposit’s southern end has returned promising gold and silver assay results. Some of the highlights include: 20.7 metres at 2.52 g/t gold and 86.1 g/t silver from 99 metres; 17.5 metres at 2.28 g/t gold and 2.5 g/t silver from 222 metres; 14.2 metres at 1.61 g/t gold and 4 g/t silver from 147 metres; 22.4 metres at 0.99 g/t gold and 27.8 g/t silver from 212 metres; 10.7 metres at 1.34 g/t gold and 8.1 g/t silver from 44 metres; 9.1 metres at 1.6 g/t gold and 10.5 g/t silver from 195 metres and; 3.8 metres at 2.42 g/t gold and 1.5 g/t silver from 184 metres. As it prepares to release Misima’s definitive feasibility study, technical studies are underway across the asset. To date, phase one metallurgical testing has been finalised, with a phase two program currently underway. Livingstone Gold Project Misima isn’t the only project Kingston has its eyes on: the gold-producing hopeful is also invested in a West Australian precious metals asset. Livingstone Gold Project lies just 40 kilometres north of Meekatharra and spans 240 square kilometres across the western Bryah Basin. The rising gold developer currently has a 75% stake in the project, where the Kingsley prospect was discovered back in 2018. Livingstone hosts a JORC 2004-compliant inferred mineral resource, with 989,000 tonnes at 1.57 g/t gold for 49,900 contained ounces. Kingston’s majority-owned project also includes a number of high-grade, historical drilling intersections, strong soil anomalies and historical workings — all of which indicate excellent potential for additional discoveries. Some of the best intersections reported at the project’s Kingsley prospect to date include: 1-metre at 100.25 g/t gold from 88 metres; 15 metres at 4.66 g/t from the surface; 10 metres at 11.95 g/t from 20 metres; 22 metres at 3.65 g/t from 20 metres; 5 metres at 3.68 g/t from 12 metres; 10 metres at 4.15 g/t from the surface; 8 metres at 3.32 g/t from 92 metres and; 20 metres at 1.96 g/t from 1-metre. With two gold exploration assets under its belt, Kingston is well-positioned to pursue its goal and become a precious metals producer in the Asia Pacific.